NEW BERLIN, Ill. ( MainStreet) -- Last year a large number of folks took advantage of an option newly available to them by converting IRA funds to a Roth IRA. The conversion had not been available to folks with an income above $100,000, but the law was changed to allow folks with any income. In addition, for last year only, when you converted you had the option to delay paying tax until the following two tax years.Since the market has taken a downturn in recent months, there now are a great many folks who may be looking to "undo" a conversion. The rules generally allow you to do this until Oct. 15 of the year following the conversion (it's actually Oct. 17 this year). This "undo" activity is known as recharacterization.
|With the market downturn in recent months, you may want to hit the free "undo" button on your Roth.|
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